Thailand’s tourism sector may be cooling off, but one hotel boss is turning up the heat — and he’s betting big on local travellers.
Despite a slowdown in international arrivals, Koko Global Hospitality (Thailand) Co Ltd (KGH), the operator behind the Kokotel hotel chain, is expanding its footprint across the region.
The company’s chief executive, Rei Matsuda, believes the current slump presents a golden opportunity.
“The market is quieter than expected during the low season. But we hope for a rebound by year-end when the High Season kicks in.”
From January 1 to June 8, Thailand welcomed over 15 million foreign visitors, a 2.87% year-on-year dip.
Malaysia topped the charts as the largest source market, while China slipped to second place, according to the Tourism and Sports Ministry. Chinese tourists currently make up about 15% of KGH’s guests, with growing interest from Indian and Middle Eastern travellers.
Still, Matsuda insists KGH isn’t reliant on any single nationality.
“We’re focused on efficient operations and adapting to changing trends.”
KGH expects to maintain a nationwide occupancy rate of 75% this year, rising to 80% at its Bangkok properties. Thai guests currently make up 15-20% of Kokotel’s customer base, with destinations like Chiang Rai, Hua Hin, Pattaya, and Chiang Mai attracting an even higher share of domestic tourists.
“Some Thai holidaymakers may now choose local getaways instead of travelling abroad, similar to trends we’ve seen in China.”
KGH is also eyeing struggling independent hotel owners who may seek professional management services during the downturn. Matsuda sees particular growth potential in the three-star segment, especially outside of Bangkok, where oversupply remains an issue.
“Phuket, Krabi, and Khao Lak still offer room for expansion.”
As of May 31, KGH manages 41 hotels across Thailand, Japan and the Philippines. Of these, 34 are directly operated, 10 are in pre-opening stages, and seven receive consultancy support, totalling more than 2,500 rooms, reported Bangkok Post.
KGH aims to operate 100 hotels by 2026, with 75% in Thailand, 20% in the Philippines, and 5% in Japan. Long-term, the goal is even bolder: to manage 1,000 hotels across 10 countries by 2035.
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